b. How much revenue would Bell recognize on the Year 2 income statement? (Do not round intermediate calculations and round your final answer to nearest whole number.) Revenue to be recognized in Year 2
b. How much revenue would Bell recognize on the Year 2 income statement? (Do not round intermediate calculations and round your final answer to nearest whole number.) Revenue to be recognized in Year 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer only. Please make sure to round.
Transcribed Image Text:b. How much revenue would Bell recognize on the Year 2 income statement? (Do not round intermediate calculations and round
your final answer to nearest whole number.)
Revenue to be recognized in Year 2
c. What is the amount of cash flow from operating activities in Year 2?
Amount of cash flow from operating activities in Year 2
Transcribed Image Text:ework 2
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Clark Bell started a personal financial planning business when he accepted $56,000 cash as advance payment for managing the
financial assets of a large estate. Bell agreed to manage the estate for a one-year period beginning June 1, Year 1.
Required
a. Show the effects of the advance payment and revenue recognition on the Year 1 financial statements using a horizorntal statements
model given below. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity,
NC for net change in cash and NA if the account is not affected. (Do not round intermediate calculations and round your final
answers to nearest whole number. Enter any decreases to account balances and cash outflows with a minus sign.)
CLARK BELL PERSONAL FINANCIAL PLANNING
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